Audit Delay and Motivators of Qualified Opinion in Brazil: A Preliminary Study

Posted: 29 Mar 2009 Last revised: 18 Aug 2009

See all articles by Antonio Nunes Pereira

Antonio Nunes Pereira

University of Sao Paulo - Faculdade de Direito; Universidade Municipal de São Caetano do Sul (USCS); Fucape Business School

Date Written: February 1, 2009

Abstract

This study aims to identify the reasons for the reservations on opinions of external auditors and the average time of issue (audit delay) calendar-year 2007. Descriptive and exploratory in nature, the study uses the technique of content analysis and exploratory data analysis, calculation of average simple. The documentation-support used contains the opinions of external auditors in 2007 the powers that formed a database from the information available from 01/01/2008 to 30/06/2008 held in the portal of the Securities Commission (CVM). Were initially identified 655 companies, of which 54, (8%), were subject, focus of this research. The content analysis indicated that 5 (five) more reasons applicants were considered for exceptions: the inconsistency of the lease accounting, the accounting for related controlled by the equity method, companies committed to the continuity, wrongful appropriation of tax credits, and non-confirmation of the balances of some accounts. This finding confirms the existence of institutional variables that impact the Brazilian accounting practices and auditing. For the sample, the average time for delivery of reports with exception was 66 days on the average of 57 days for non-exception reports. This delay of 9 (nine) days apparently confirms the tradition of research in audit delay, agency and timeliness.

Keywords: qualified opinion, Content Analysis. audit delay

JEL Classification: M49, M47

Suggested Citation

Pereira, Antonio Nunes, Audit Delay and Motivators of Qualified Opinion in Brazil: A Preliminary Study (February 1, 2009). Available at SSRN: https://ssrn.com/abstract=1369746 or http://dx.doi.org/10.2139/ssrn.1369746

Antonio Nunes Pereira (Contact Author)

University of Sao Paulo - Faculdade de Direito ( email )

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São Paulo, São Paulo 01005-010
Brazil

Universidade Municipal de São Caetano do Sul (USCS) ( email )

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São Caetano do Sul, São Paulo 09521-160
Brazil
11 4239 5000 (Phone)

Fucape Business School

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